TSX posts marginal gain, Oct. 30-Nov. 5

Canada’s main stock index fell after U.S. Federal Reserve Chair Janet Yellen said there was a “live possibility” of a rate hike in December.

But the S&P/TSX Composite Index still eked out a small gain — up 0.22% to 13,558.78 — heartened perhaps by news that Canada’s trade deficit in September ($1.7 billion) had narrowed more than expected, with monthly exports rising 0.7%.

Lower commodity prices weighed on resource stocks, with the S&P/TSX Capped Diversified Metals & Mining Index sliding 1.2% to 421.02, the S&P/TSX Global Mining Index dropping 2.5% to 48.73, and the S&P/TSX Global Gold Index tumbling 6.1% to 125.83. The New York spot price for gold lost 3.3% to finish at US$1,103.60 per oz.

Shares of Rubicon Minerals were the most traded, dropping 66% from 39¢ to 20¢ apiece, after the company suspended underground development at its Phoenix gold mine project in Ontario.

The company said trial mining had shown that the main F2 gold deposit was “more complex” geologically than anticipated. It has spent almost $400 million on the project over the last four years, with commissioning in May.

Before the suspension, Rubicon had expected to reach commercial production in the first quarter of 2016. The company said the suspended operations will lay off 87% of its workforce.

Agrium topped the list of value gainers, jumping $2.08 per share to $126.83 per share. The company reported third-quarter net earnings of US$99 million — or US72¢ diluted earnings per share — compared to US$91-million, or US63¢ per share, for the same quarter of 2014.

The increase came from higher sales volumes of wholesale nutrients and lower production costs in the wholesale business unit, while earnings in the retail segment were similar to the previous year, despite weaker market conditions.

Agrium anticipates strong crop input demand before the new year.  

News of a $22 million non-dilutive debt facility lifted shares of Montreal-based Orbite Technologies 16% to 41¢.

The company said the secured debt financing from MidCap Financial consisted of an $8.5-million revolving credit facility and two term loans: one worth $0.6 million, and the other $13 million.

Orbite is finishing its first commercial high-purity alumina production plant in Quebec, and has completed basic engineering for a proposed smelter-grade alumina production plant, which would use clay mined from the junior’s Grande-Vallée deposit. 

Shares of Lundin Mining fell 15¢ to $4.07. The company reported a net loss in the third quarter of US$35.3 million, or a net loss attributable to Lundin shareholders (after deducting non-controlling interests) of US$34.6 million (5¢ per share).